Home Educators Exempt from Centrelink Activity Test

by Beverley Paine
Winter 2012, revised May 2019, updated June 2023

Many home educating families were affected by the changes to Centrelink (Social Security) benefits and payments made in July 2006, and will change again in September 2023.

"Budget 2022-23 contains two significant measures affecting parents on income support: expanded eligibility for Parenting Payment Single and the end to the ParentsNext employment program.
The Government will expand eligibility for Parenting Payment Single by allowing single parents to remain eligible until their youngest child turns 14; up from the current cut-off age of 8. The Government estimates that the change will cost $1.9 billion over the 4 years to 2026-27 and will benefit at least 57,000 single principal carers. Principal carers are those caring for a dependent child under the age of 16.
M utual obligation requirements will continue to apply to Parenting Payment Single recipients with a youngest child aged 6 or older.
The change will require legislation and is intended to commence on 20 September 2023."

See also the excellent article The Homeschooling Single Parent Centrelink Benefits Guide.

The Activity Test / Mutual Obligations requires parents whose youngest child has turned six (PPP) or eight (PPS) to meet the "participation requirements" of the particular benefit or payment they receive.

Home educating that complies with the requirements of state or territory laws is listed as an "automatic exemption" from the Activity Test for the period of "dispensation, registration or exemption" (from attending school - SA): https://guides.dss.gov.au/social-security-guide/3/11/5/30
Also see this page https://www.servicesaustralia.gov.au/exemptions-from-mutual-obligation-requirements-for-principal-carers

Under Commonwealth Law (Social Security Act 1991 - Sect 5C) a home educator is defined as:
"A person is a home educator of a child if the Secretary is satisfied that:
(a)  the child is receiving, in the person's home, education that wholly or substantially replaces the education that the child would otherwise receive by attending a school; and
(b)  the person meets the requirements (if any) of the law of the State or Territory in which the person resides that the person must meet in order to be permitted, under the law of that State or Territory, to provide that education to the child ; and
(c)  the person is suitably invoved in providing and supervising that education."
http://www.austlii.edu.au/au/legis/cth/consol_act/ssa1991186/s5c.html

The maximum rate of payment for families transitioned onto Newstart is higher for families registered as home educators (as above). The parent is eligible for supplementary payments in addition to the basic rate. This amount is equal to the maximum rate of PPS, including pension supplement. http://guides.dss.gov.au/guide-social-security-law/5/1/8/20

It is advisable for home educating parents in receipt of social security benefits and payments to look into the home education registration process in their state. Click on your state or territory on the navigation bar of this website.

Families who have been through this process recommend that you be prepared as you will need to provide evidence of registration during your Centrelink interview. Take any letters or copies of emails to show that you are in the process of obtaining registration if you have not yet received your certificate or notification of home educator status.

Make a note of the name and phone extension number of the person interviewing you (either in person or over the phone).

Most Centrelink staff are unfamiliar with the concept of home education. You are welcome to print out our general What is home education flyer and use it to help give others a better idea about home educating.

It is normal Centrelink practice to inform you of any documents you need to provide and to allow you time to supply them if you don't have them by the time of the appointment. Ask for a list of what you need to provide, and a date by which you will need to provide it.

Know your rights and responsibilities: read the information on the Guide to Social Security Law as it may help you understand what you are required to comply and will enable you to talk confidently about your rights and responsibilities during any interviews. If you think it will help, print out relevant information from the Guide and take it with you.

One home educating parent reported that it is common approach is to put parents on an agreement which requires them to submit a form every 3 months (advising Centrelink that the family is still home educating).

Remember, if in doubt, please seek advice from an appropriately qualified legal professional.

The following links (obtained April 2014) provide further definitions and information.

• Parenting Payment guide
  https://guides.dss.gov.au/social-security-guide/1/2/4/10
  
• Participation Requirements Exemption in Special Family Circumstances - Automatic (PP)
  https://guides.dss.gov.au/social-security-guide/3/11/5/30
  
• Common benefit rates
  https://guides.dss.gov.au/social-security-guide/5/1/8/20
  
• Income support payment transitions to work
  https://guides.dss.gov.au/family-assistance-guide/2/8/4/20
  
• Activity Test for NSA/YA Job Seekers - Exemptions - Parents & Foster Carers with Special Family Circumstances - Automatic Exemptions
  https://guides.dss.gov.au/social-security-guide/3/11/5
  
• Change of Eligibility Circumstances
  http://guides.dss.gov.au/family-assistance-guide/5/2/1/20
  
• Currents rates of benefits
  http://guides.dss.gov.au/guide-social-security-law/5/1/8/20

Use this Centrelink page to find phone numbers to call whichever section you need to contact.